Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved in production are: $\begin{array}{lr}
\text { Direct material per unit } & \$22 \
\text { Direct labor per unit } & 15 \
\text { Variable manufacturing overhead per unit } & 6 \
\text { Fixed manufacturing overhead per year } & 206,400
\end{array}$ In addition, the company has fixed selling and administrative costs of $88,000 per year. During the year, Cold City Blowers produced 8,600 snow blowers and sold 8,000 snow blowers. There is no beginning inventory. Ignoring taxes, how much will full costing net income differ from variable costing net income?

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The Answer of Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved in production are: $\begin{array}{lr}
\text { Direct material per unit } & \$22 \
\text { Direct labor per unit } & 15 \
\text { Variable manufacturing overhead per unit } & 6 \
\text { Fixed manufacturing overhead per year } & 206,400
\end{array}$ In addition, the company has fixed selling and administrative costs of $88,000 per year. During the year, Cold City Blowers produced 8,600 snow blowers and sold 8,000 snow blowers. There is no beginning inventory. Ignoring taxes, how much will full costing net income differ from variable costing net income?

Cold City Blowers Produces Snow Blowers In Addition, the Company Has Fixed Selling and Administrative Costs